Dynamic Gains and Market Access Insurance: Another look at the AUSFTA
AbstractWe use a dynamic computable general equilibrium model to revisit the dynamic benefits of the Australia-USA Free Trade Agreement and, in particular, to evaluate the insurance value of this agreement in the face of regional and global trade wars. The insurance benefits are quantified by comparing the status quo against alternative scenarios where some or all regions raise tariffs by 10 percent, both permanently and temporarily. These insurance gains are found to be as much as four times larger than the traditional status quo efficiency gains.
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Bibliographic InfoPaper provided by School of Economics, The University of New South Wales in its series Discussion Papers with number 2007-23.
Length: 27 pages
Date of creation: Jul 2007
Date of revision:
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More information through EDIRC
Trade policy; Computable General Equilibrium; Human Capital; Dynamics;
Find related papers by JEL classification:
- F15 - International Economics - - Trade - - - Economic Integration
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-02-16 (All new papers)
- NEP-CMP-2008-02-16 (Computational Economics)
- NEP-IAS-2008-02-16 (Insurance Economics)
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